RBI also needs to look at growth, FM says ahead of monetary policy review

Jul 29 2013, 14:42 IST
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Finance Minister P Chidambaram (PTI) Finance Minister P Chidambaram (PTI)
SummaryFM says mandate of a central bank is not only to ensure price stability.

said.

Chidambaram assured the industry that their credit needs would be met by banks.

Observing that there is enough money in the system, he said banks are not getting big ticket demands.

"Industry must come to banks and make big demands for credit. I want you to talk about big industries and where you would come and demand credit of Rs 300-400 crore. That's not coming. If it comes, banks have assured me that enough credit will be provided," Chidambaram added.

To a query on rupee, he said, the depreciation was because of speculations and not due to any radical change in the Indian economy.

He said the measures taken by the RBI on liquidity front had a "a good effect" on the domestic currency.

On the current account deficit (CAD), Chidambaram said in 2012-13 it was fully financed by the government.

"I am going to do my best to ensure that we fully finance it (CAD) without drawing down reserves," he added.

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